Daily auto finance news

The IRS announced Friday that plug-in electric vehicles using certain types of batteries may qualify for a new tax credit if purchased this year. There are two new tax credits available for electric scooters and neighborhood vehicles.

Low-speed or two or three-wheel electric vehicles, such as motor scooters, purchased after Feb. 17, 2009, and before Jan. 1, 2012 will qualify for a credit of 10 percent of the cost of the vehicle, up to a maximum credit of $2,500.

In technical jargon, these must be either low-speed vehicles that are propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours or be two or three-wheeled vehicles that are propelled to a significant extent by a rechargeable battery with a capacity of at least 2.5 kilowatt hours.

The second tax break is for vehicles that have at least four wheels (like the one pictured above) and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. If purchased in 2009, the minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery.

Vehicles that are considered low-speed, four-wheeled vehicles manufactured primarily for use on public streets, roads and highways (neighborhood electric vehicles) may qualify for both tax credits if purchased after February 17, 2009. But, consumers cannot claim both credits for the same vehicle.

Vehicles manufactured primarily for off-road use, such as for use on a golf course, do not qualify for either credit.